EFFECTS OF PORT USER FEES ON EXPORT GRAIN FLOW PATTERNS

The purpose of this paper is to evaluate the effect of the proposed deep draft port user fee on export grain flow patterns and provide insight into potential marketing system adjustment costs which may result from diverted flows. A multiperiod, network flow model is used to conduct the analysis. Analyses show grain flow patterns to be affected most by a port specific fee which is based on weight. The annual variation in flows generated by imposition of port user charges in generally less than the historical year-to-year variation and, in most cases, the altered port area flows can be accommodated by existing infrastructure.International Relations/Trade,

Effect of Proposed Port User Fees on Export Grain Flow Patterns.

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Impact of port user charges on the U.S. grain export marketing system and producers' welfare

Typescript (photocopy).During the past few years, legislative initiatives introduced to the U.S. Congress have aimed at recovering the federal government's outlays to operate, maintain, and improve the nation's deep-draft navigation facilities. Most proposed legislation seeks to levy a port charge for commercial users (ship operators) to raise the funds that would be recovered by the federal government. The objective of this study was to assess the impact that such user charges would have on the U.S. grain export marketing system and the welfare of grain producers. Analyzed commodities include corn, grain sorghum, hard red winter and spring wheat, soft wheat, durum wheat, and soybeans. Several port user charge scenarios were analyzed based on the major features of most proposed legislation. The impact of the various port user charge scenarios was evaluated by means of a cost minimizing network flow model. Analysis included changes in ocean shipping rates (the user charge), and their associated effect on prices and quantities traded in the relevant markets. With the exception of grain sorghum, results indicate that the grain export marketing system was sensitive to the imposition of port user fees. It was found that port user fees had the potential to generate significant deviations from historical grain flow patterns, which may affect competition between and within port areas. Analyses to assess the impact of port user fees on the welfare of U.S. grain producers were based on a model of international trade for each studied commodity. The procedure to estimate relevant welfare changes was based on the elasticities of supply and demand relationships in both the grain world and U.S. domestic markets. Results indicate that the welfare losses, associated with the imposition of port user fees, to U.S. producing agriculture would be rather modest

Impact of port user charges on the U.S. grain export marketing system and producers' welfare

Typescript (photocopy).During the past few years, legislative initiatives introduced to the U.S. Congress have aimed at recovering the federal government's outlays to operate, maintain, and improve the nation's deep-draft navigation facilities. Most proposed legislation seeks to levy a port charge for commercial users (ship operators) to raise the funds that would be recovered by the federal government. The objective of this study was to assess the impact that such user charges would have on the U.S. grain export marketing system and the welfare of grain producers. Analyzed commodities include corn, grain sorghum, hard red winter and spring wheat, soft wheat, durum wheat, and soybeans. Several port user charge scenarios were analyzed based on the major features of most proposed legislation. The impact of the various port user charge scenarios was evaluated by means of a cost minimizing network flow model. Analysis included changes in ocean shipping rates (the user charge), and their associated effect on prices and quantities traded in the relevant markets. With the exception of grain sorghum, results indicate that the grain export marketing system was sensitive to the imposition of port user fees. It was found that port user fees had the potential to generate significant deviations from historical grain flow patterns, which may affect competition between and within port areas. Analyses to assess the impact of port user fees on the welfare of U.S. grain producers were based on a model of international trade for each studied commodity. The procedure to estimate relevant welfare changes was based on the elasticities of supply and demand relationships in both the grain world and U.S. domestic markets. Results indicate that the welfare losses, associated with the imposition of port user fees, to U.S. producing agriculture would be rather modest

EFFECTS OF PORT USER FEES ON EXPORT GRAIN FLOW PATTERNS

The purpose of this paper is to evaluate the effect of the proposed deep draft port user fee on export grain flow patterns and provide insight into potential marketing system adjustment costs which may result from diverted flows. A multiperiod, network flow model is used to conduct the analysis. Analyses show grain flow patterns to be affected most by a port specific fee which is based on weight. The annual variation in flows generated by imposition of port user charges in generally less than the historical year-to-year variation and, in most cases, the altered port area flows can be accommodated by existing infrastructure

A WELFARE ANALYSIS OF PORT USER FEES: THE CASE OF GRAIN AND SOYEAN EXPORTS

User fees have become a popular means of financing public services, including certain transportation facilities. The Water Resources Development Act of 1986 includes provisions for user fees to finance part of the costs of operations, maintenance, and new construction of the U.S. port system. The purpose of this paper is to evaluate the welfare implications of this legislation. An analytical model is developed and used to estimate the impact of port user fees on grain and oilseed producers, consumers, and the government. The results of the analysis indicate that the user fee has a relatively small effect on producer welfare and that the efficiency gains resulting from the replacement of the government subsidy for port operations, maintenance, and new construction with a user fee are negligible

A WELFARE ANALYSIS OF PORT USER FEES: THE CASE OF GRAIN AND SOYEAN EXPORTS

User fees have become a popular means of financing public services, including certain transportation facilities. The Water Resources Development Act of 1986 includes provisions for user fees to finance part of the costs of operations, maintenance, and new construction of the U.S. port system. The purpose of this paper is to evaluate the welfare implications of this legislation. An analytical model is developed and used to estimate the impact of port user fees on grain and oilseed producers, consumers, and the government. The results of the analysis indicate that the user fee has a relatively small effect on producer welfare and that the efficiency gains resulting from the replacement of the government subsidy for port operations, maintenance, and new construction with a user fee are negligible.International Relations/Trade,